Sovereign Wealth Funds Briefing - Archive | March, 2012

The Canadian government said Thursday it plans to introduce legislation to allow foreign and domestic sovereign-wealth funds to invest in Canadian financial institutions, a move which would allow banks and insurance companies to raise capital to meet new Basel banking rules.
Canada is believed to be the only G-7 country that explicitly bars sovereign-wealth funds from investing in its financial institutions, which puts lenders and insurers at a disadvantage when it comes to raising capital………………………………………..Full Article: Source

A top private-equity executive at China Investment Corp. has resigned, according to people familiar with the matter, joining other recent departures from the giant sovereign-wealth fund.
Collin Lau, who joined CIC in February 2009 as its head of real-estate investment, opted to quit as his three-year employment contract was coming up for renewal, the people said. Mr. Lau, who became head of CIC’s European private-equity operations in December, cited “personal and family reasons” for his decision, one of the people said………………………………………..Full Article: Source

Temasek Holdings Pte, Singapore’s state-owned investment company, said it appointed Lee Theng Kiat, head of its Singapore Technologies Telemedia Pte unit, as president and general counsel, effective April 1.
“As general counsel of Temasek he will be a key member of our senior leadership, both in our portfolio and investment decisions, and in developing our bench strength for the future,” Temasek said………………………………………..Full Article: Source

Singapore investment firm Temasek Holdings has appointed a veteran of the telecoms industry to one of its top posts. Chief executive and president of Singapore Technologies Telemedia (STT) Lee Theng Kiat, 59, will join Temasek as president and general counsel from April 1.
A Temasek spokesman said Mr Lee ‘brings with him many years of cross-border investment and business experience’………………………………………..Full Article: Source

As concerns about the India story mount some institutional investors are taking money off the table. Leading that list is the world’s second largest sovereign fund, Norway’s Government Pension Fund with total assets under management of over USD 600 billion. The fund has halved its exposure to Indian equities in 2011.
FII inflows so far for 2012 have been strong, helping the Indian markets rally. But the post budget disappointment is starting to weigh on the investment decisions of some institutional investors………………………………………..Full Article: Source

Norway’s Government Pension Fund, the world’s second largest sovereign fund with around USD 600 billion worth of assets under management has scaled down its exposure to Indian equities.
In its annual report, Norway’s Government Pension Fund has said that it has reduced its exposure to Indian equities into 2011. It has cut investments in Indian stock from 246 companies in 2010 to 122 companies in 2011. Its total investment in India also fell to around USD 1.8 billion from USD 3.5 billion in 2010………………………………………..Full Article: Source

When the floodlights come on at the Fukuoka Yahoo! Japan Dome, the first pitch of the season thrown at the stadium will be a special one for its home team Fukuoka Softbank Hawks.
The reigning champions of Japan’s baseball series will finally have a home they can truly call their own. The Government of Singapore Investment Corporation (GIC) agreed to sell the Fukuoka Yahoo! Japan Dome, home of the Hawks, to the team’s owner telco Softbank for 87 billion yen (S$1.3 billion), in a deal announced last week………………………………………..Full Article: Source

Outgoing Future Fund chairman David Murray has condemned Labor’s carbon tax as “the worst piece of economic reform I have ever seen in my life”. Mr Murray, who has also lashed the Gillard government’s mining tax, warned the tax would undermine the nation’s competitiveness and damage the economy.
“If you want me to tell you my view, it is the worst piece of economic reform I have ever seen in my life in Australia,” he told ABC radio this morning………………………………………..Full Article: Source

The outgoing chairman of the Future Fund has launched a stinging attack on the federal government ahead of his departure next week. David Murray described the carbon tax as the worst piece of economic reform he had seen in his life, warning it would be very bad for the economy.
It would raise costs within Australia and reduce the export competitiveness of energy-related commodities………………………………………..Full Article: Source

Everyone’s in a lather about outgoing chair of the Future Fund David Murray’s comments on the carbon tax on Radio National this morning.
Specifically, the tax is “the worst piece of economic reform” he has every seen in his life. And that “the consequence of introducing that tax at that level in Australia today is very, very bad for this economy, particularly in terms of international competitiveness”………………………………………..Full Article: Source

Irish Prime Minister Enda Kenny has returned from China with the promise of billions of Euros worth of investment to follow.
Already the China Investment Corporation has signed a special agreement with Ireland’s NTMA agency – which manages the national savings and sale of state assets. CIC intends to invest heavily in Irish companies and state assets, a move that is set to create jobs and boost Ireland’s export figures………………………………………..Full Article: Source

Ian Bell is right to express outrage at the suggestion that the Abu Dhabi sovereign wealth fund should be allowed to buy into RBS (”It is a breach of trust to sell stake in RBS to Abu Dhabi”, The Herald, March 28).
It is of particular interest that the prospective buyer is Abu Dhabi, almost a modern-day byword for wealth. Tens of thousands of Scots have been to Abu Dhabi in the past decade and have seen the fruits of the oil-generated wealth: an amazing transformation of a chunk of desert into a staggering metropolis in three decades………………………………………..Full Article: Source

Muammar Gaddafi’s family described as illegal on Thursday the seizure of 1.1 billion euros ($1.46 billion) worth of assets that Italian police said belonged to members of the ousted Libyan leader’s family.
The assets, including stakes in blue chip Italian companies, a Harley-Davidson motorcycle and a chunk of forest on a Mediterranean island, were held by Libya’s sovereign wealth fund on behalf of the Gaddafi family, Italy’s tax police said………………………………………..Full Article: Source

PineBridge Investments ‘PineBridge’, the global multi-asset class investment manager, is pleased to announce the appointment of Talal Al Zain as Chief Executive Officer of the firm’s Middle East and North Africa ‘MENA’ operations. His appointment marks the launch of PineBridge’s full service operations in MENA, which will see the establishment of new regional headquarters.
Al Zain, formerly CEO of Bahrain Mumtalakat Holding Company ‘Mumtalakat’, the sovereign wealth fund and investment arm of the Kingdom of Bahrain, will spearhead the further expansion of PineBridge’s MENA presence, which builds upon the firm’s existing private equity capabilities in Istanbul, Turkey and distribution office in Dubai, UAE. (Press Release)

The House of Representatives mandated its Joint Committees on Finance and Appropriations to investigate alleged indiscriminate withdrawals from the stabilisation account by the Federal Government.
The stabilisation account is meant to be used to fund deficits in the budget when oil price is below the approved budget bench mark price………………………………………..Full Article: Source

Alaskans have just a few more days to sign up for this year’s Permanent Fund Dividend. The deadline to apply is 11:59 p.m. Saturday. People can apply online or visit a designated distribution center to pick up forms.
Alaskans received checks of $1,174 last year when the 2011 dividend was paid. The money comes from investment profits from Alaska’s oil-wealth savings account………………………………………..Full Article: Source

The Abu Dhabi Investment Authority (ADIA), one of the world’s largest sovereign wealth funds, has appointed Eduardo Favrin as head of Latin America in its latest move to strengthen its emerging markets platform.
Favrin, based in Abu Dhabi, will lead a team of senior portfolio managers and be responsible for developing strategy, managing risk and overseeing management of Latin America-focused investment portfolios in ADIA’s internal equities department, the fund said in a statement………………………………………..Full Article: Source

Qatari Diar, the property arm of Qatar’s sovereign wealth fund, is eyeing investments in emerging markets this year, the company’s chief executive said on Wednesday.
The property firm, whose worldwide portfolio includes 49 projects valued at over $39 billion, has been on a buying spree in Europe as part of the Gulf Arab state’s strategy of employing its natural gas riches to diversify its income flows………………………………………..Full Article: Source

A Middle East-based investment fund is poised to swoop on a prime piece of central London property in a £230m deal. PCP Capital Partners, a vehicle set up by Amanda Staveley, the financier who is orchestrating a potential capital injection into Royal Bank of Scotland (RBS) by Abu Dhabi sovereign wealth funds, is to acquire Great Arundel Court, a 3.3 acre site just south of The Strand, I understand.
The property is being bought from Land Securities, one of Britain’s biggest property companies. A deal could be announced as soon as this week………………………………………..Full Article: Source

As Kenyans continue to savour news of the country potentially joining the ranks of oil producers, the government is being urged to establish a fund into which surplus income from the petroleum industry will be deposited.
Oil industry expert Patrick Obath said on Tuesday that Kenya should borrow a leaf from Norway which has about $600 billion in its sovereign wealth-fund which has been used to turn around the fortunes of that country………………………………………..Full Article: Source

The House of Representatives, yesterday, mandated its Joint Committees on Finance and Appropriations to investigate alleged indiscriminate withdrawals from the stabilisation account by the Federal Government.
The stabilisation account is meant to be used to fund deficits in the budget when oil price is below the approved budget bench mark price.When on May 27, 2011 the president signed the 2011 Appropriation Amendment Bill and Nigerian Sovereign Investment Authority, NSIA, Bill into law, he stated that revenues accruing to the authority would be invested by it through three special funds……………………………………….Full Article: Source

The doors were opened for cash-rich Chinese investors to pump billions into our economy. In a huge vote of confidence, one of the world’s richest investment funds signed a special agreement with the NTMA — the agency which manages the national savings and sale of state assets.
The fund, known as China Investment Corporation (CIC), is looking at investing massive sums in companies and assets, sparking hopes of a real revival and more jobs………………………………………..Full Article: Source

Eike Batista’s net worth soared $7.7 billion after he sold a 5.63 stake in his EBX Group Co. holding company to Abu Dhabi’s Mubadala Development Co.
The Brazilian billionaire’s fortune rose 29 percent to $34.5 billion since the beginning of trading on March 26, when he announced the deal. That ranks him above American brothers Charles and David Koch and makes him the eighth richest man on Earth, according to the Bloomberg Billionaires Index, a daily measure of the world’s richest people………………………………………..Full Article: Source

Wildrose Leader Danielle Smith has pledged to grow the Heritage Saving Trust Fund to $200 billion within 20 years and reinstate the provincial law banning deficit budgets if her party forms government.
Smith told a partisan crowd at an art gallery in her Highwood riding that her government would put 50 per cent of surplus revenues into the trust fund annually to grow it for the day oil and gas royalties revenues decline………………………………………..Full Article: Source

Iceland wants to target wealth funds from China and Norway next time it sells debt to foreign investors after fixing its krona controls to prevent some bondholders getting their returns in other currencies.
The parliament’s March 13 agreement to backtrack on a program to ease currency controls by targeting debt investors it characterized as speculators won’t affect Iceland’s ability to tap international bond markets in the future, Economy Minister Steingrimur J. Sigfusson said………………………………………..Full Article: Source

Ireland’s debt management agency and China’s sovereign wealth fund Tuesday signed a memorandum of understanding declaring their intention to work together to identify possible investments in the troubled euro-zone economy.
The signing ceremony took place during Irish Prime Minister Enda Kenny’s visit to China, the latest in a series of trips to major economic powers designed to boost investment in Ireland………………………………………..Full Article: Source

A subsidiary of China’s sovereign wealth fund on Tuesday signed a memorandum of understanding with Dublin’s debt agency to explore investment opportunities in Ireland, but gave little detail on what it might be interested in.
Europe has been courting countries with big foreign exchange reserves, such as China, to help prop up some of its indebted governments that have struggled to issue bonds as the euro zone’s debt crisis rumbles on………………………………………..Full Article: Source

The National Treasury Management Agency has signed an agreement with a subsidiary of China’s sovereign wealth fund which would allow the Chinese agency to invest in a range of assets in Ireland, including infrastructure and property.
The agreement was signed after Taoiseach Enda Kenny’s meeting with the Chinese Prime Minister Wen Jia Bao. The memorandum of understanding was signed in Beijing with CIC International, a subsidiary of China Investment Corporation………………………………………..Full Article: Source

The UK government has discussed selling some of its shares in Royal Bank of Scotland (RBS) to an Abu Dhabi sovereign wealth fund as the authorities continue to look for ways to cut the state’s stake in the lender.
A senior banker told Gulf News that the offer to own a third of RBS shares “is a strategic decision and it has been taken at the right time”. “The talks have been going on for six months, and nothing is likely to materialise for the next few months,” according to Reuters, adding that Abu Dhabi could end up with a stake of more than a third, though it has not decided which of its entities would hold the stake………………………………………..Full Article: Source

Discussions between UK Financial Investments, which manages the government’s 82 per cent stake in RBS, and the Abu Dhabi Investment Authority have reportedly been held for months.
A deal could reportedly see at least 10 per cent and up to a third of the government’s stake sold on. The government is keen to reach an agreement with the oil-rich Gulf emirate’s sovereign wealth fund by the end of the year, according to the BBC………………………………………..Full Article: Source

Talks to sell a stake in Britain’s state-owned Royal Bank of Scotland are being held at the level of the Abu Dhabi ruling family, sources told Reuters.
A source familiar with the matter said on Tuesday that Amanda Staveley, a businesswoman notable for her Middle Eastern connections, was advising the emirate’s rulers………………………………………..Full Article: Source

Shares in Royal Bank of Scotland rose sharply on Tuesday following a report that the government was negotiating to sell part of its majority stake to a Middle East sovereign wealth fund.
Though the Treasury said no sale was imminent, RBS shares were up 4.1 percent at 28.88 percent around 1 p.m., falling back from a 6.7 percent gain earlier………………………………………..Full Article: Source

Mubadala Development Corp., the sovereign-wealth fund of Abu Dhabi’s government, is buying a $2 billion stake in the holdings of Brazilian magnate Eike Batista — a move that exposes the Gulf state to the South American country’s fast-growing economy.
The investment, Mubadala announced Tuesday, gives the company a 5.63 percent equity interest in Batista’s U.S.-based Centennial Asset Brazilian Equity Fund LLC, or Cabef, a holding company that’s commonly known as EBX Group………………………………………..Full Article: Source

The Federal Government asked the 36 state governors for an out of court settlement in a lawsuit instituted by them, challenging the legality of the Excess Crude Account and the decision to transfer $1bn from the account to the Sovereign Wealth Funds (SWF).
The request contradicted the Federal Government’s earlier stance on the matter. The Supreme Court panel headed by the Chief Justice of Nigeria, CJN, Justice Dahiru Musdapher, could not hide its anger at the inconsistent positions of the Federal Government in the case three years after it started………………………………………..Full Article: Source

Temasek Holdings, the smaller but more visible of Singapore’s two sovereign funds, is moving into a new phase with its investment strategy, writes Reuters.
The shift in strategy could transform the institution into a group similar to Blackstone, another $160 billion institution, which has grown from a focused private equity firm to a global asset manager, writes Reuters………………………………………..Full Article: Source

The world’s second largest sovereign fund Norway’s Government Pension Fund Global has reduced equity exposure to Indian companies in 2011. According to data published on its website, the fund had equity stake in 120 Indian companies as of December 31, 2011, compared with 246 companies as of December 31, 2010.
Its investments in Indian equities were worth $1.82 billion as of December 31, a steep fall from $3.47 billion worth of investments it had held in India a year ago………………………………………..Full Article: Source

Abu Dhabi’s sovereign-wealth fund said it would invest $2 billion to buy into the sprawling business empire of Brazil’s richest man, Eike Batista, a move that could lead to further investments by the Gulf state in Brazil and Latin America.
The transaction “marks our first significant direct investment into one of the fastest-growing markets and is an important step in [the] development of strategic opportunities in Brazil and Latin America,” said Khaldoon Khalifa Al Mubarak, chief executive of Mubadala Development Corporation……………………………………….Full Article: Source

Mubadala Development Co., the Abu Dhabi investment firm with stakes in General Electric Co. and the Carlyle Group, agreed Monday to pump $2 billion into Brazil’s EBX Group, looking to tap into the growing South American market.
The funds will buy Mubadala a 5.63 percent stake in the Brazilian conglomerate, including an indirect interest in its various subsidiaries, the companies said in a joint statement announcing the deal. EBX has interests in a range of industries, including mining, energy and power generation………………………………………..Full Article: Source

The Government has discussed selling some of the taxpayer’s holding in Royal Bank of Scotland to an Abu Dhabi sovereign wealth fund as the authorities continue to look for ways to cut the state’s stake in the lender.
UK Financial Investments, which manages the state’s 82pc stake in RBS, held talks recently with Abu Dhabi wealth funds, though a source said the discussions were not at an advanced stage and no sale was expected in the near future………………………………………..Full Article: Source

Discussions with sovereign wealth funds have taken place as part of attempts to sell off the 83% taxpayer stake in RBS. Selling off shares in Royal Bank of Scotland at a loss will face fierce resistance, the Liberal Democrats and Labour warned on Monday, amid fresh speculation that talks are underway with a sovereign wealth fund in Abu Dhabi to buy a stake in the bailed-out bank.
Discussions with sovereign wealth funds, which invest the money of rich states, have taken place as part of moves to sell off the 83% taxpayer stake in RBS and the 40% stake in Lloyds Banking Group………………………………………..Full Article: Source

The Norges Bank Investment Management (NBIM), which manages the Norwegian Government Pension Fund Global, today released the results of a survey into potential or current investment companies’ levels of reporting of social and environmental risks in 2011.
World-leading companies such as sports brand Adidas and food company Nestlé were among the 1,078 companies that scored highly. ……………………………………….Full Article: Source

Temasek Holdings, the smaller but more visible of Singapore’s two sovereign funds, is moving into a new phase with its investment strategy, and could look more like Blackstone Group , another $160 billion institution, which has grown from a focused private equity firm to a global asset manager.
The shift follows setbacks since the 2008 financial crisis; the loss of $5 billion invested in Western banks; the abrupt departure of the fund’s first non-local CEO before he’d even taken up the post; and the recent exit of dealmakers hired by CEO Ho Ching, the prime minister’s wife, who has led Temasek for a decade………………………………………..Full Article: Source

Japanese mobile phone giant Softbank said Monday it would pay an affiliate of a Singapore sovereign wealth fund more than US$1.0 billion for its dome stadium in the country’s south.
Softbank, the country’s third-biggest mobile phone operator, said the move was aimed at cutting costs tied to the Fukuoka Yahoo! Japan Dome, home ground for its professional baseball team the Fukuoka SoftBank Hawks. The Japanese firm said it pays 5.0 billion yen a year to an arm of the Singapore Investment Corporation (GIC) for use of the stadium………………………………………..Full Article: Source

Malaysia’s Khazanah Nasional Bhd will offer to buy minority shares in Turkey’s largest hospital chain Acibadem Saglik Hizmetleri & Ticaret AS at a minimum price of US$13.67 per B group share, Turkish market regulator said on its website after the market closed on March 23.
Khazanah’s two units bought a 75 per cent stake in Acibadem’s owner Acibadem Saglik Yatirimlari Holding AS in January, in an acquisition that valued Acibadem at US$1.68 billion for its entire share capital……………………………………….Full Article: Source

The Australian Greens have consistently called for Australia to set up a new sovereign wealth fund, to help pay for infrastructure projects. But the opposition treasury spokesman Joe Hockey rejected the idea.
“A new sovereign wealth fund for Australia is a ridiculously stupid idea for so long as we have taxes that are higher than many of our competitors, when we have net debt of A$140 billion, and for so long as we have a free and open economy,” he said………………………………………..Full Article: Source

Australia’s shadow treasurer Joe Hockey has a political reputation to uphold as a straight shooter but he may have unsettled some of the world’s biggest sovereign wealth investors by candidly calling for greater transparency in their holdings of the Pacific nation’s bonds.
In an interview with Dow Jones Newswires yesterday, Mr Hockey explained his vision of why Australia needs a new register to reveal the identity of offshore buyers of its debt securities………………………………………..Full Article: Source

Future Fund has purchased 35 million shares in toll road operator Transurban for $192.7 million, to hold 6.78% as the fund continues its build its exposure in Australian infrastructure.
Purchased through infrastructure fund manager RARE Infrastructure, the Future Fund confirmed to Financial Standard that it had been building its holding in Transurban since December through the activities of its external managers………………………………………..Full Article: Source

International law firm Eversheds has been appointed to the international panel of the Qatari Diar Real Estate Investment Company (Qatari Diar), an international leader in sustainable development and investment.
The news follows the confirmation of thirteen international law firms to Qatari Diar’s six legal panels. Commenting on the panel appointments, Qatari Diar Group CEO Eng. Mohammed bin Ali Al Hedfa said: “I am delighted that we have appointed these thirteen international firms to support Qatari Diar’s global presence across our six panels. Qatari Diar was impressed by the high quality of the proposals received from the firms which participated. (Press Release)

The Supreme Court has began hearing on the case between the 36 state governors and the Federal Government over the Sovereign Wealth Fund.
The 36 state governors had sued the Federal Government to the apex court over their proposed plan to transfer the sum of $1 billion from the Excess Crude Account to a new account, which would be known as the Sovereign Wealth Fund………………………………………..Full Article: Source

A Sovereign Wealth Fund (SWF) is a state-owned investment fund composed of financial assets such as stocks, bonds, property, precious metals or other financial instruments. Sovereign wealth funds invest globally. Most SWFs are funded by foreign exchange assets.
Some sovereign wealth funds may be held by a central bank, which accumulates the funds in the course of its management of a nation’s banking system; this type of fund is usually of major economic and fiscal importance. ……………………………………….Full Article: Source